The shared services market is rapidly revolutionizing the functions of businesses through consolidation of operational processes and implementation of automation. Shared services enable organizations to reduce costs, improve service quality and focus on core activities by centralizing common corporate functions like accounting, human resources, supply chain management and customer service into separate departments.
The Global Shared Services Market is estimated to be valued at US$ 187.18 Mn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the shared services market are Dell Inc., Curtiss-Wright Corp., Getac Technology Corp., General Dynamics Corp., Zebra Technologies Corp., L3 Technologies Inc., Panasonic Corporation, Scio Teq, Sparton Corp., Crystal Group Inc., Kyocera Corp., and Beijer Electronics Group AB. Shared services allow organizations to achieve economies of scale by consolidating repetitive tasks into centralized locations. This has led to growing demand from industries aiming to improve operational efficiencies. Moreover, collaboration between shared services providers and their clients has been enhancing due to increased globalization and digital transformation of business models.
Market Key Trends
Process automation is one of the key trends gaining momentum in the Global Shared Services Market Growth . Implementation of robotic process automation, artificial intelligence and cloud-based technologies help streamline workflows and establish paperless systems. This significantly improves productivity, quality and turnaround times of transaction processing activities handled by shared services centers. For example, robotic bots can be programmed to extract and validate data from invoices, purchase orders and other documents to eliminate manual data entry work. Automated solutions are hence positively impacting the growth dynamics of the overall market.
Porter’s Analysis
Threat of new entrants: Shared services require high initial capital investments and technical expertise to set up the shared services center.
Bargaining power of buyers: Buyers have low bargaining power as there are many established players in the market providing shared services.
Bargaining power of suppliers: Suppliers have moderate bargaining power owing to availability of substitutes and bargaining power of buyers.
Threat of new substitutes: Threat of new substitutes is moderate as new functions can be outsourced but core competencies are retained by organizations.
Competitive rivalry: Intense competition among existing players to tap growth opportunities in emerging markets.
Geographical Regions
North America accounts for the largest share of the global shared services market in terms of value. This is attributed to early adoption of shared services models by large enterprises based in the US and Canada for achieving operational efficiencies.
Asia Pacific is poised to witness the fastest growth during the forecast period. Factors such as reducing cost pressures, growing digitalization, and presence of global in-house centers are driving the adoption of shared services in Asia Pacific economies including China, India, and Philippines. Rapid industrialization and economic growth in Asia Pacific provide high growth potential for shared services market players.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it